NeoGenomics Inc (NEO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,638,040 | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 |
| Total stockholders’ equity | US$ in thousands | 902,339 | 941,537 | 998,023 | 1,108,280 | 694,294 |
| Financial leverage ratio | 1.82 | 1.79 | 1.74 | 1.69 | 1.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,638,040K ÷ $902,339K
= 1.82
The financial leverage ratio of NeoGenomics Inc has been steadily increasing over the past five years, from 1.42 in December 31, 2020, to 1.82 in December 31, 2024. This indicates that the company relies more on debt financing compared to equity to fund its operations and growth. While an increasing leverage ratio can amplify returns on equity when the business is performing well, it also magnifies the risks during economic downturns or when the company faces financial challenges. It's important for investors and stakeholders to closely monitor NeoGenomics Inc's ability to manage its debt levels and generate sufficient cash flows to meet its financial obligations.